KARACHI, 28TH SEPTEMBER 2023: NEPRA has issued its decisions on two petitions initiated by the Federal Government in respect of two quarters i.e. 1st and 4th Quarter of FY 23. Per Uniform Tariff Policy, these quarterly adjustments will be applicable to KE customers post notification by Federal Government.
NEPRA and the Government of Pakistan legislates the governing policies and regulations which determine the costs recovered from customers in their monthly bills. Individual Distribution Companies cannot influence the process or make unilateral changes.
In the first decision dated September 22, 2023, NEPRA has determined a charge of PKR 3.28 per unit to be passed on to XWDISCO customers on account of 4th Uniform Quarterly Adjustments for the period FY22-23. Per policy guidelines issued by the Federal Government, the Authority has decided to allow the application of these quarterly adjustments on K-Electric as well. Following notification from the Government, this quarterly adjustment will apply across the country for a six-month period beginning from October 2023 to March 2024.
In the second decision dated September 27, 2023, NEPRA has determined to apply 1st Quarterly Adjustment of FY-23 to KE consumers as charged on XWDISCOs during the period February and March 2023 as per the policy guidelines. Accordingly, PKR 1.48 per unit to be charged on customers consuming up to 300 units (except lifeline), PKR 3.21 per unit on all other residential customer categories, and PKR 4.45 per unit for all other categories excluding certain Commercial & Agriculture consumers who will be charged PKR 2.68 per unit and PKR 4.14 per unit respectively. Once notified by the Federal Government, this quarterly adjustment will be recovered in October and November 2023, based on consumption for the months of February and March 2023.
ABOUT K-ELECTRIC:
K-Electric (KE) is a public listed company incorporated in Pakistan in 1913 as KESC. Privatized in 2005 KE is the only vertically integrated utility in Pakistan supplying electricity within a 6500 km square territory including Karachi and its adjoining areas. The majority shares (66.4%) of the company are listed in the PSX owned by KES Power, a consortium of investors including Aljomaih Power Limited of Saudi Arabia, National Industries Group (Holding), Kuwait, and the Infrastructure and Growth Capital Fund (IGCF). The Government of Pakistan is also a minority shareholder (24.36%) in the company.